TVC (tvc) Curve, Diminishing Returns, Returns to Scale

Related BrainMass Solutions

• Studying average and total cost curves

  When the law of diminishing takes place, the firm begin to experience decreasing returns to its variable factor, thereby causes TC and TVC to begin increasing at an increasing rate.

• TVC Curve

  The solution determines the TVC curve and how it reflects diminishing returns.

• Analyzing production costs - Fixed and Variable costs

  Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves.

• Production Process Multiple Choice Questions in Economics

  increasing returns to scale B. constant returns to scale C. decreasing returns to scale D impossible to determine 27.

• Production Costs Analysis

  Explain how the law of diminishing returns influences the shapes of the variable-cost and total-cost curves.

• Cost of production

  182007 Cost of production 1.If MC is increasing, what is happening to the ATC? Why is this happening? a. What does the law of diminishing returns have to do with the shape of the AVC and ATC curves? Explain why those curves are U-shaped.

• Calculating costs for a bread factory

  If adding another worker does not change the factory's ATC, there are constant returns to scale. If adding another worker increases the factory's ATC, there are diseconomies of scale.

• Tables and problem solving

  In the same way, from labor level of 1 to 2, the extra product is reaching from 6 to 15, which means the MP is the difference between 6 and 15 = 9. Now, at the 3rd level of labor usage, the MP of labor starts diminishing or declining, from 9 to 6.

• Marginal physical and revenue products

  If a firm increases inputs by 15 percent and output increases by 12.5 percent, the firm is experiencing a. increasing returns to scale. b. decreasing returns to scale. c. constant returns to scale. d. increasing costs per unit of output.